Trade has always been at the heart of the relationship between the United States and Canada. As one of the world’s largest trading partnerships, any shift in American policy sends ripples across the Canadian economy. Under former President Donald Trump, trade took center stage, with bold tariffs, renegotiated agreements, and a focus on “America First.” But what did these policies — often framed as trump vs Canada — really mean for Canada?
In this article, we look at how Trump’s trade policies affected Canada’s industries, jobs, and overall economic outlook. We also examine the long-term impact of the USMCA agreement, tariffs on Canadian steel and aluminum, and what Canadian businesses learned from this turbulent era.
The Tariff Tensions: Steel and Aluminum
One of the first major moves by Trump was imposing tariffs on imported steel and aluminum in 2018, citing national security concerns. These tariffs hit Canada hard, despite the countries being close allies.
For Canadian steelworkers, it meant uncertainty. Plants in Ontario and Quebec felt pressure as costs went up and demand wavered. The Canadian government quickly responded with retaliatory tariffs on U.S. goods, leading to what some called a mini trade war.
Job losses in the Canadian steel sector
Reduced exports to the U.S.
Increased costs for manufacturers using steel and aluminum
In the short term, the Canadian steel industry faced nervous investors and shifts in trade patterns.
NAFTA to USMCA: A New Trade Era
Perhaps the biggest headline during Trump’s presidency was the replacement of NAFTA with the United States-Mexico-Canada Agreement (USMCA). Trump often criticized NAFTA as unfair to American workers and pushed for tougher rules on autos, dairy, and dispute resolution.
For Canada, the USMCA meant significant changes:
Increased access for U.S. dairy into Canadian markets, impacting Canadian dairy farmers.
New rules requiring more car parts to be made in North America, helping some Canadian auto manufacturers but raising costs.
Updated digital trade rules and environmental standards.
While Canada avoided the worst-case scenario of Trump tearing up NAFTA completely, many Canadian industries had to adjust quickly to the new rules.
Impact on Canadian Jobs and Growth
Economists note that Trump’s trade agenda created periods of uncertainty for Canadian companies. The threat of auto tariffs loomed large over Ontario’s manufacturing sector. Many firms delayed investments or hiring because of unpredictable policies.
Despite the turbulence, Canada’s economy showed resilience:
Exports to the U.S. remained strong overall
Canadian negotiators worked hard to protect key sectors
Dairy and steel-dependent industries faced tough adjustments
The era reshaped how businesses plan for the future and underscored the need to adapt quickly.
Lessons Learned by Canadian Businesses
Trump’s trade policies taught Canadian companies the importance of diversification. Many firms began looking beyond the U.S. market, seeking new partners in Europe and Asia. This push toward global trade could strengthen Canada’s economic future and reduce dependency on one partner.
Business leaders also learned the value of flexibility:
Tariffs and policy shifts meant companies had to renegotiate contracts
Finding new supply chains became essential
Quick adaptation was crucial for survival
Long-Term Impacts on Canada-U.S. Relations
Trump’s tenure tested the traditionally friendly relationship between Canada and the U.S. While trade tensions have eased under new leadership, the era underscored how quickly political shifts in Washington can affect Canadian livelihoods.
Today, policymakers and business groups continue to watch U.S. politics closely, knowing that American trade decisions have a direct impact north of the border.
Looking Ahead: Canada’s Trade Future
As we look to the future, Canada is taking steps to build stronger ties with other countries and invest in domestic industries. The lessons from Trump’s trade policies highlight the need for Canada to balance its close ties to the U.S. with broader international relationships.
Trade remains a cornerstone of Canada’s economy. By focusing on innovation, sustainability, and fair trade practices, Canada hopes to protect jobs, grow industries, and avoid over-reliance on any single market.
In the end, the Trump era left Canadian businesses more cautious but also more prepared for global uncertainty. And while the political winds may shift again, Canada’s commitment to trade remains strong.
